More Canadians buying into RRSPs: Study

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QMI Agency

Dec 8, 2012

, Last Updated: 1:53 PM ET

More Canadians are investing in RRSP's, but they are not maxing out their annual contribution, a study says.

According to BMO Financial Group's third annual national RRSP survey, 67% of Canadians have an RRSP, up six per cent from 2011. And three-quarters of those polled said they plan to contribute the same amount or more compared to last year.

Of those who do not have an RRSP, half (49%) said they intend to open one within the next five years.

The report, released Saturday, shows that last year's average contribution amount was $4,670.

However, the study also found that 68% of us are worried about the performance of our retirement savings "given the volatility that has characterized financial markets over the last two years."

"It's encouraging that a growing number of Canadians understand the important role an RRSP can play in preparing for retirement," said Marlena Pospiech, a spokeswoman for BMO Financial Group. "But it's sobering that so many are worried about the performance of their investments within their RRSP.

"During times of market volatility, it's critical that Canadians have a financial plan that includes a retirement component and that they review their investments regularly and seek out the assistance of a financial professional if needed."